CLEVELAND, Ohio – City Council approved two economic development packages Monday that will help revitalize two downtown landmarks.

One ordinance will use of tax revenues to finance improvements associated with redevelopment of the Statler Arms Apartments at East 12th Street and Euclid Avenue.

The other ordinance authorizes the city’s economic development office to loan $1 million to Medical Mutual to allow it to refurbish the Rose Building on East Ninth Street as its corporate headquarters.

Millennia’s plan is to upgrade the building, which opened in 1912 as the Statler Hotel, into higher-end residences.

The tax-increment financing deal approved by City Council will generate money over 30 years to help pay for improvements to the property.

Once the upgrades are complete, the property is expected to generate nearly $334,000 in residency taxes a year. Once residential tax abatements expire, the building is expected to raise about $242,000 a year for Cleveland schools.

Medical Mutual acquired the Rose Building in 2017, paying $37.9 million for the building and its annex at East Ninth Street and Prospect Avenue as well as to cover remaining payments that Medical Mutual owed on its lease at the site.

The property had been tied up in court since mid-2016, when a lender initiated foreclosure proceedings against troubled California-based landlord BentleyForbes. That litigation, and the appointment of a receiver - an outside expert - to oversee the real estate and figure out the best path, presented an opportunity for Medical Mutual to step in.

Medical Mutual owned the Rose Building from the mid-1980s until 2000, when the insurer sold its real estate to BentleyForbes to free up cash.

The $1 million development loan will help pay for $11 million to $12 million in upgrades to the property. Medical Mutual expects to keep more than 900 jobs on site.

The loan is for a 20-year term. After 10 years, Medical Mutual could apply to have some or all of the loan forgiven if the company meets certain economic targets.